Greenback slips on uncertainty

CommSec: US Close 31 July 172:53

US sharemarkets were mixed on Friday. Blue-chip shares rose but technology shares eased modestly. Shares in Amazon lost 2.5% in response to its earnings result. Amongst other large decliners on the day were Altria (-9.5%), Mattel (-7.8%) and Starbucks (-9.2%). The Dow Jones rose by almost 34 points or 0.2% to a record high.

July 30th 2017

2 years ago

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The Australian dollar may fall a little further on Monday.Source:Getty Images

THE Australian dollar is steady against the greenback which has slipped on uninspiring US growth and continued political uncertainty. At 0635 AEST on Monday, the Australian dollar was worth 79.81 US cents, from 79.80 US cents on Friday.

US gross domestic product growth picked up to 2.6 per cent in the second quarter, broadly matching expectations, while growth in the first quarter was revised down to 1.2 per cent.

With little to surprise, traders focused on the Trump’s healthcare bill’s failure to pass through Congress, which further undermined expectations administration’s economic policies will actually be implemented. Westpac’s Imre Speizer said the US GDP, and wages, data had hurt interest rates and the US dollar.

“The US dollar fell against all G10 currencies except the Swiss franc,” he said in a Monday morning note. AUD/USD fell as far as 0.7937 in London trade, bounced above 0.7990 on the US data, flickered above 0.8000 briefly then steadied just below the figure.”

He thought the Australian dollar may fall a little further on Monday. “(It’s) likely to find support on pullbacks from 0.80, with the US dollar still patchy.” The local currency is lower against the yen and the euro.